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Variable Rate Mortgage

The interest rate you pay on a variable mortgage can vary, moving up and down during the life of the mortgage.

Pros and Cons

Usually a lender's Standard Variable Rate (SVR) is not the most competitive interest rate it has to offer. There is little benefit to paying the SVR itself but most lenders have deals to attract your business such as cash-back or discounts.

This is where having someone who can search out all of these deals for you can be of benefit.

Cash-Back Mortgages

Some lenders offer cash-back mortgages, where you pay the standard variable rate and are given a lump sum on completion of the mortgage. This can be useful for individuals who require funds who need cash upfront e.g. to have a new bathroom fitted

Discounted Variable Rate Mortgages

The majority of lenders offer discounts off their standard variable rates. It is simply a reduction of their SVR for a fixed period of time.

Get off the SVR

It is important that you get the most suitable deal possible, standard variable rates are unlikely to be the best on offer. It is important to look around at the various discount, fixed, capped and tracker deals.

Mortgage deals tend to be fixed for a set time period, maybe 1, 2, 5 or 10 years. When you get to the end of a deal the mortgage is transferred onto the lenders standard variable rate unless another deal is arranged.

It can be all to easy to let this happen and lose out.

Before you come to the end of your deal your lender will advise you that it is due to expire. This gives you plenty of time to shop around for another.

This is known as remortgaging and I am able to assist you in locating the most suitable deal for you so give me a call.